Conforming Loan Limits Stay Put for 2014, Including High Cost Areas

Whether because of the uproar from some membersrnof Congress, the Mortgage Bankers Association, National Association ofrnRealtors, and other industry players or not, Edward J. DeMarco, Acting Directorrnof the Federal Housing Finance Agency (FHFA) has left loan limits for FanniernMae and Freddie Mac unchanged for the coming year.  In a press release on Tuesday DeMarco saidrnthat the maximum conforming loan limits for mortgages acquired or guaranteed byrnthe two government sponsored enterprises (GSEs) will remain at $417,000 forrnone-unit properties in most areas of the country.</p

Some high costs areas such asrnWashington, DC, New York, Boston, and large parts of California are exempt fromrnthe $417,000 ceiling with limits that range as high as $625,000.  This upper limit is also unchanged.  It is possible there are areas that have previousrnfallen into the jumbo mortgage category between the two loan limits that mayrnnow be capped at the national limit or have experienced some changes inrnmaximums depending on local calculations. rn</p

DeMarco had announced in late summerrnthat he would roll back the limits to a lower level for the coming year asrnanother step in reducing the influence of the GSEs in the mortgage market andrnencouraging greater participation by the private sector.  The industry groups above and others sentrnletters both to FHFA and to Congress protesting any downward revisions asrnpotentially harmful to homebuyers, refinancers, and the housing marketrnrecovery.  </p

Loan limits are changed each yearrnaccording to a formula which takes into account median prices in localrnareas.  The limits have been unchangedrnfor several years because of emergency regulations put in place in response tornthe housing crisis and changes that lower limits are usually the province ofrnCongress.</p

A link to a spreadsheet with a county byrncounty breakdown of the new limits is available at www.FHFA.gov.rn

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